In the last couple of weeks the ASX200 has attempted to rally and move back above the key 5800 level. Despite its best efforts to rally however, it has been unable to move back through. As I have mentioned a couple of times now, if the index remained below the 5800 level for several days, this level would be likely to provide resistance. This of course makes the 6000 level even further away as there would now be another layer for the index to move through before it can retest the resistance at 6000.
As we enter June and approaching half way through the year, the index is quite flat this year. It opened back on 3 January at 5667 and finished today around 5790.
The all time highs / lows reading this week is 9 / 4. Stocks achieving all time high this week include Cochlear (ASX Code: COH) and Aristocrat Leisure (ASX Code: ALL). The 4 stocks that achieved all time lows this week include Surfstitch and Adairs.
Daily chart of S&P/ASX200 Index | Image from MetaStock
Whilst the Australian dollar has done well in the last month to rally from near 0.73, it has run back into the key level of 0.75 which is causing all sorts of problems and preventing the AUDUSD from moving any higher. Similar to the index, it is almost duplicating the price action from a few months ago (over New Years) when it dropped through 0.75 but rallied over the next few weeks back up to resistance at 0.75 before succumbing to supply and moving down to a six month low around 0.7150.
In the last couple of days it has been sold off quite strongly and quickly approaching the lows from several weeks ago below 0.7350.
If it continues to drift lower from its current trading levels, the next obvious key level is around 0.7150 where it found solid support around New Years but also around 12 months ago pushing the currency pair higher again back to 0.77 on both occasions. As we know the Australian dollar has spent considerable time in the last 12 months trading between the two key levels of 0.75 and 0.77, however you could easily picture it drifting lower before returning to that range again.
As I type this, it is currently trading around 0.7390.
Daily chart of AUDUSD | Image from MetaStock
This material is made available by Trading Excellence Pty Ltd (ABN 11 096 024 958) (“Trading Excellence”) and Stuart McPhee who is an Authorised Representative (No 276438) of Australian Stock Report Pty Limited (AFSL 301682 – ABN 94 106 863 978)(“ASR”) and Amalgamated Australian Investment Solutions Pty Limited (AFSL 314614 – ABN 61 123 680 106)(“AAIS”).
This blog is prepared and disseminated for information and discussion purposes only. It is neither an offer to buy or sell securities, or any other financial products nor a solicitation of an offer to buy securities or other financial products. To the extent that any of the content of this website constitutes advice, it is general advice as opposed to personal advice.
Opinions, estimates and projections constitute the current judgement of the author as at the date of publication. They do not necessarily reflect the opinions of ASR, AAIS or any of the related entities, and are subject to change without notice. Whilst the information presented herein is believed to be reliable and sourced from public sources believed to be reliable, ASR and AAIS do not make any representation as to its accuracy or completeness. Past performance is not necessarily indicative of future results.
ASR and AAIS have no obligation to update, modify or amend this publication or otherwise notify a recipient if any opinion, forecast or estimate contained herein changes or subsequently becomes inaccurate.
Employees and/or associates of ASR, AAIS and its related entities may hold one or more of the stocks, securities or investments reviewed in the newsletter or on the website. Any personal holdings by employees and/or associates of ASR and AAIS and their related entities should not be seen as an endorsement or recommendation in anyway.
ASR and AAIS’ Privacy Statement and Financial Services Guide can be obtained upon request.
No part of this document may be reproduced in any form without the prior written consent of Trading Excellence Pty Ltd.
© Trading Excellence Pty Ltd 2017. All Rights Reserved.